With a second day of recovery underway following its recent corrective declines, GBPJPY could be preparing to return above the 135.47 level, its Feb 18'2011 high. This will put the cross in a position to head further higher towards its Aug 03'2010 high at 137.75 and possibly higher. Its daily RSI is bullish and pointing higher suggesting further strength. Alternatively, the risk to this analysis will be a break and hold below the 131.09 level, its Feb 25'2011 low with a violation of that level if seen driving the cross further lower towards the 130.92 level, its Feb 04'2011 low and then the 129.81 level. We think the bulls should come in at that level and turn the cross higher. All in all, GBPJPY is preparing to strengthen further through the 135.47 level in the days ahead.